Cigarette prices in Ukraine will increase monthly, reaching UAH 205 per pack in 2028

A significant increase in cigarette prices is expected in Ukraine. They will gradually increase monthly from 2025 to 2028. Ultimately, the average cost of a pack of cigarettes in hryvnias should more than double: from UAH 100 at the beginning of 2025 to UAH 205 at the end of 2028.

This is stated in the RBC-Ukraine material.

The increase in the cost of cigarettes will occur by bringing the excise tax on tobacco products to the European level. So, in 2025 it should be EUR 78, and by the end of 2028 – EUR 90. An increase in the excise tax on tobacco products cannot be avoided in Ukraine, because we are joining the EU. Therefore, we need to harmonize our tax system with the European one. And there, EUR 90 is the lowest possible excise tax on tobacco products.

The law on the gradual increase in excise tax on cigarettes was adopted by the Verkhovna Rada on December 4 last year. However, Volodymyr Zelenskyy has not signed it yet. Because of this, Ukraine has already lost more than UAH 700 million of excise tax, says Member of Parliament Yaroslav Zhelezniak.

If the law does come into force (and this will happen with a probability of 99.99%), the excise tax on 1,000 cigarettes will change as follows:

- 2025 – EUR 78 (+35.4%);

- 2026 – +5% more;

- 2027 – +4.8% more;

- 2028 – EUR 90 (+4.7%).

On heated tobacco products (HTPs), the excise tax will increase as follows:

- 2025 – to EUR 70.4 (by 22%);

- in 2026 and 2027 – +0.5% each year;

- in 2028 – EUR 72 (+1.2%).

Currently, the excise tax on regular cigarettes and sticks is the same. But later they will grow unevenly and in the end the difference between them will be EUR 18 or 25%.

By increasing the excise tax, the increase in cigarette prices will be very significant. So, if at the end of 2024 a standard pack of cigarettes cost an average of UAH 100, then in 2028 it will be UAH 205.

This year, the cost of a pack may increase by an average of UAH 30-35. However, this price increase will not be instantaneous. Prices will increase gradually – once or twice a month.

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